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FBI arrests millionaire doctor on fraud, kickback charges

Healthcare Auditing Weekly, July 17, 2007

Dr. Patrick Chan of Little Rock, AR is under house arrest and is required to wear an ankle bracelet until his trial begins in August--all because he allegedly received kickbacks for medical equipment paid for by Medicare and Medicaid. Before these allegations surfaced, Chan, who worked as a neurosurgeon, made $200,000 a month and was worth $10 million, The Daily Citizen reports.

The allegations are a result of a whistleblower lawsuit, where a salesman for NuMed Tech., Inc. said Chan asked him split his commissions on medical products. On July 31, wearing audio and video recording equipment, the salesman made a $15,000 payment to Chan using FBI money marked with an ultra-violet light--which in the end helped the FBI arrest Chan.

Chan, a Canadian citizen, said he had been planning to join his wife and children in Canada before he was arrested. Chan's passport, which he has since surrendered, and $30,000 were found in his car when he was arrested.

A civil suit and a class action suit have also been filed against Chan by another man, who claims Chan performed unnecessary surgery on him and is now crippled for life. Medical supply companies provided bribes and kickbacks to Chan, the complaint states, motivating him to do the surgery.

Chan's trial is scheduled to start August 6. If convicted on the criminal charges, Chan faces up to five years in prison and/or a $25,000 fine for each transaction.

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